FORTUNA METALS LTD — Capital/Financing Update 2017

Sep 25, 2017

ADDRESS PHONE EMAIL Unit 5, Ground Floor +61 (8) 9486 4036 pmcneil@frontierresources.com.au 1 Centro Ave, Subiaco ABN WEBSITE WA, 6005 Australia 96 095 684 389 www.frontierresources.com.au

ASX: FNT

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Market Announcements Platform

26[th] September 2017

Strategy for the Remainder of 2017

Frontier Resources Limited ( Frontier or the Company ) is pleased to announce the Company’s Strategy for the remainder of 2017.

Non‐Executive Director and geophysicist Mr Peter Swiridiuk undertook a review (Directors P.A. and P.S. McNeil are related parties and recused themselves) of Frontier’s Papua New Guinea areas of operation, projects (ELs), possible projects (ELAs) and current financial capability.

Director Swiridiuk noted that Frontier’s finances are inadequate to achieve the present ‘ambitious’ strategy and recommended:

1. The Bulago and Muller Fold Belt ELs are potentially ‘more’ prospective than the New Britain Projects and Frontier should continue to concentrate on them.

   • Initial exploration should be undertaken at Muller, to allow site visits by major companies interested in a possible JV. The drill rig can be easily moved from Bulago to Muller when warranted.

   • Bulago exploration should consist of evaluation of skarn and higher elevation Bulago Valley gold+ base‐ metal silt+ stream geochemical anomalies.

2. The Option on Ala River ‐ EL 2375 (with FrontRunner Exploration PNG Ltd), should be terminated, because there is no budget to pay the required $80,000.

   • Due to loss of operational synergies in New Britain, Frontier should terminate the Option on EL 2461 ‐ Andewa.

3. The Tolukuma Region EL Application should be vigorously pursued as a high gold prospectivity area of operations (as noted in the Share Purchase Plan), commencing with the Warden’s Court Hearing tomorrow.

The ELAs in the D’Entrecasteaux Islands should also be pursued as high gold prospectivity /low operation cost projects, commencing with the Warden’s Court Hearings in late October + early November.

1. The Company will need to obtain additional project funding, when appropriate.

Frontier’s Chairman and Managing Director Peter McNeil said:

“Director Swiridiuk’s review of Frontier’s areas of operation, projects and financial capability has determined that the Company should concentrate exploration on the Muller plus Bulago Fold Belt Projects, pursue the EL Applications (particularly for the Tolukuma Region) and withdraw from the New Britain Ala and Andewa Project Options.

This is a logical and fiscally prudent consolidation strategy that will be implemented immediately. Access issues, ‘awareness’ and discussions with landowners have precluded the commencement of the recently announced Andewa exploration program and these staff will be redirected to Muller for exploration.”

For additional information relating Frontier and our projects, please visit the website at www.frontierresources.com.au.

FRONTIER RESOURCES LTD

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P.A. McNeil, M.Sc., MAIG Chairman and Managing Director